The Solvency II Directive requires that certain areas must be reviewed by the European Commission by the end of 2020. The Commission has now written to the European Insurance and Occupational Pensions Authority (EIOPA) requesting its advice by 30 June 2020 on items that it has identified as deserving a reassessment. In forming its advice, it’s expected that EIOPA will issue a series of industry consultations addressed to various stakeholders over the coming months. Any proposed changes will be high on the agenda of actuarial functions and risk functions and (re)insurers will need to carry out impact assessments in relation to areas affecting them.
In this briefing note, Milliman’s Karl Murray and Eoin King set out the areas covered by the Commission’s latest request for the 2020 review of the whole Solvency II framework. They also cover a separate request that the Commission has issued to EIOPA related to insurers’ asset and liability management, which is also part of the 2020 review process, as well as providing an update on the latest news in relation to the 2018 interim review of the Solvency II Delegated Regulation.